Jim Cramer, the host of Mad Money, spoke on Wednesday about why diversification still matters, especially during violent market swings.
There is a reason I always hesitate to recommend the hottest stocks in the market, the ones with the parabolic moves, the monstrous one-day gains. Why? Because of days like today, that’s why, days where you can lose so much money in the high-fliers, more than you made when they were going up, that it just takes your breath away… I don’t know if there’s still a huge amount of hope for tech. There’s some, obviously. Tech’s a good part of the market. It’s just that many of these stocks suddenly aren’t worth as much as we thought. Some of that’s because the whole enterprise software cohort has gone out of style thanks to AI.
READ ALSO: Jim Cramer Highlighted 16 Noteworthy S&P 500 Stocks and Jim Cramer Shared His Opinion on These 14 Stocks.
Cramer said that, on the other hand, the market is filled with companies that generate no profits and are swept up in pure speculation. He said these names were part of what he calls the “year of magical thinking stocks,” the same ones he urged viewers to stay away from back in October 2025.
The bottom line, let me give it to you: If you despise diversification, I got some real bad news for you. If this volatility keeps up, volatility being a code name for getting the bejesus kicked out of you, and you stay undiversified, then you’re going to get smashed by a Bitcoin derivative, one that guarantees you the full faith and credit of an analyst or a hedge fund manager who spouts their virtue in every media outlet. I say these things should never have been born. For lots of these, incredibly, it’s still not too late to sell.
Our Methodology
For this article, we compiled a list of 14 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 4. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Commented on These 14 Stocks
14. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Number of Hedge Fund Holders: 32
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is one of the stocks Jim Cramer commented on. Mentioning that they bought the stock last year, a caller asked what is going on with it. Here’s what Cramer had to say in response:
Sell it. I mean, it’s just a kind of classic, that’s a year of magical thinking, magical investing stock. We don’t want to touch that one. But it is in Edison, New Jersey, which is where, by the way, Edison was born. It just happens to be a great coincidence.
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) develops zinc-based battery energy storage systems designed for utility-scale and industrial use as an alternative to lithium-ion and lead-acid technologies. The company announced the launch of Eos Indensity on January 14. The architecture uses a design framework called Spatial Intelligence to handle site-specific needs for scale and safety. The system builds on the company’s Z3 module and zinc-powered Znyth technology. Eos Energy Enterprises, Inc.’s (NASDAQ:EOSE) CEO, Joe Mastrangelo, said:
We’ve taken everything we’ve learned over 15 years and built a system that answers the toughest questions in energy storage: How do you scale responsibly? How do you deliver flexibility without compromise? How do you make storage safe enough to sit next to the assets that power modern life? The idea of what we call Spatial Intelligence—thinking deeply about and designing for the daily needs and realities of the places our storage would go—that was our team’s guiding star, and Indensity is our answer. And it’s ready now.
13. Synchrony Financial (NYSE:SYF)
Number of Hedge Fund Holders: 56
Synchrony Financial (NYSE:SYF) is one of the stocks Jim Cramer commented on. Answering a caller’s query about the stock, Cramer remarked:
I don’t want to own Synchrony. I want to own Capital One, COF, the Charitable Trust owns it. It’s pulled back nicely from $259 to $225.
Synchrony Financial (NYSE:SYF) provides credit cards, installment loans, and healthcare financing, and also offers basic banking services. Cramer made similar remarks when he discussed the company during the episode aired on September 9, 2025. The Mad Money host commented:
Then up next is Synchrony Financial. That’s a credit card issuer, which has retired 7% of its shares per year. Tempting? No, because, see, I prefer Capital One, which said this very day that it’s stepping up its share repurchasing this quarter.
It is worth noting that the company’s stock is down 1.1% from the day the above comment was aired.
12. SkyWest, Inc. (NASDAQ:SKYW)
Number of Hedge Fund Holders: 36
SkyWest, Inc. (NASDAQ:SKYW) is one of the stocks Jim Cramer commented on. When a caller asked for Cramer’s opinion on the stock, he replied, “I buy United, and I buy FedEx, and you get them both.”
SkyWest, Inc. (NASDAQ:SKYW) runs a regional airline that provides scheduled passenger and freight flights, along with on-demand charter and ground handling services. In addition, the company leases aircraft and spare engines to other parties. It reported its Q4, 2025, results on January 29, posting a GAAP EPS of $2.21, up $0.13 from the estimates, and the revenue of $1.02 billion was up 8% year-over-year and beat estimates by nearly $28.5 million.
For the full-year 2025, the company reported a net income of $428 million, or $10.35 per diluted share. It’s net-income was up almost 33% year-over-year from the prior year’s $323 million.
11. Nextpower Inc. (NASDAQ:NXT)
Number of Hedge Fund Holders: 41
Nextpower Inc. (NASDAQ:NXT) is one of the stocks Jim Cramer commented on. During the lightning round, a caller inquired if they should hold or add to their position in the stock. In response, Cramer said:
Alright, that’s… Dan Shugar… We actually owned it for the trust. We sold it too soon. He is a moneymaker. Just go buy it. That’s how good he is. Just go buy it. I love that guy.
Nextpower Inc. (NASDAQ:NXT) provides solar tracker technologies and energy management software for solar projects. The company develops specialized hardware for difficult terrain and weather conditions and offers digital tools to monitor and improve power production. A caller inquired about the stock during the lightning round of the episode aired on November 14, 2025, and Cramer responded:
Dan Shugar is the real deal. I think it’s a terrific stock. You notice they changed the name to Nextpower. I would be a buyer of the stock. I let go of the stock. I made a profit. I should have stayed. It was my bad. A lot of times I kick myself over this one and Alphabet, two that I sold too early. You’ve got a winner.
10. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)
Number of Hedge Fund Holders: 47
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) is one of the stocks Jim Cramer commented on. A caller asked if the current price is a discount on the company’s rare disease pipeline or if the market has already priced in expectations for the company’s future performance. Cramer replied:
No, no, no, just stay away from that. I mean, honestly, that’s, it is just been a very bad stock for a very long time, and I don’t think it’s going to improve.
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) sells treatments for rare diseases, including an oral medication for hereditary angioedema and an injectable flu therapy. It also works on discovering and testing new drugs for allergic and immunological conditions. On January 23, the company finalized the $700 million acquisition of Astria Therapeutics. The acquisition adds navenibart to BioCryst Pharmaceuticals, Inc.’s (NASDAQ:BCRX) portfolio. It is a long-acting Phase 3 therapy for hereditary angioedema, which is a rare genetic condition that causes sudden, painful swelling in different parts of the body.
9. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 74
Newmont Corporation (NYSE:NEM) is one of the stocks Jim Cramer commented on. A caller mentioned that they already own AEM shares and are now looking to invest in NEM. Cramer commented:
No need, you own the best. You own the best. Own a bullion other than that, and I think you’ll be fine.
Newmont Corporation (NYSE:NEM) is a mining company that produces and explores gold, while also seeking copper, silver, zinc, lead, and other metals. Cramer discussed the company during the January 5 episode, as he remarked:
In seventh place, there’s Newmont, yeah, the gold miner that gained 168% in 2025, reflecting the surge in gold prices last year. Now, I prefer Agnico Eagle Mines, which has also more than doubled in 2025, but you can’t really go wrong in that space when gold has had such a terrific year.
8. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 75
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the stocks Jim Cramer commented on. Cramer was bullish on the company’s stock, as he stated:
A great stock… Last night, we got results from Take-Two Interactive Software. That’s the big video game publisher. While the actual quarter was solid, the full-year forecast terrific, and they got Grand Theft Auto VI coming out in November, but the stock still lost more than 5% today, and that’s on top of a brutal decline earlier this week. Unfortunately, Take-Two reported just as everybody’s freaking out about Google’s Project Genie, an AI platform that seems like it can create video games out of whole cloth… Yes, I do think that you’re getting a chance to buy it.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) creates video games for consoles, PCs, and mobile devices. Some of its well-known games include Grand Theft Auto, Red Dead Redemption, and BioShock. During the January 8 episode,Cramer mentioned the stock in light of EA’s takeover bid, as he commented:
… Electronic Arts, that’s also got a takeover bid. It jumped almost 40% because it’s being taken private by a group of investors led by Saudi Arabia’s Sovereign Wealth Fund. The pin action from that deal boosted the other video game stocks, like Take-Two Interactive, TTWO, which will be the only independent publicly traded game publisher after EA goes private. Take-Two is up 39%, great scarcity value there, and a hope for the launch of the new edition of Grand Theft Auto in the works. By the way, it’s the greatest performing entertainment property in history.
7. Banco Santander, S.A. (NYSE:SAN)
Number of Hedge Fund Holders: 16
Banco Santander, S.A. (NYSE:SAN) is one of the stocks Jim Cramer commented on. Cramer highlighted the company’s U.S. ambitions, as he said:
This morning, we got excellent full-year results from Banco Santander, the Spanish banking powerhouse with the stock that’s charged 142% over the past 12 months. A bank. We also learned that they’re buying Webster Financial. It’s a community bank based in Connecticut, a real good one. It’s all part of their plan to dominate the northeastern United States. I think this one’s on track to become one of the most profitable banks in the world, marching steadily towards their goal of 20% return on tangible equity by 2028. Wow.
Banco Santander, S.A. (NYSE:SAN) provides banking, financing, investment, and insurance services to individuals, businesses, and public institutions. The company offers lending, wealth management, payments, and digital banking. A caller sought Cramer’s advice on the stock during the January 15 episode, and he replied:
Santander is terrific… I think that Santander is amazing. I think Ana Botín is incredible… recommending this stock since 3, and I’m redoubling my efforts to tell you to buy it right now.
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
Novo Nordisk A/S (NYSE:NVO) is one of the stocks Jim Cramer commented on. Cramer highlighted the company’s post-earnings decline, as he remarked:
What went wrong at Novo Nordisk? Yesterday, the Danish drug maker behind Ozempic reported, and the stock plunged nearly 15% before sinking another 6% today. While the quarter was fine, the guidance, let’s just say it was brutal. They’re talking about a 5% to 13% sales hit this year, thanks to pricing pressures amid fierce competition for the GLP-1 business. It seems Eli Lilly’s eating their lunch, even if it is a lunch that has no taste, an inevitable result of all GLPs.
Novo Nordisk A/S (NYSE:NVO) manufactures pharmaceuticals for chronic conditions, including diabetes, obesity, and rare blood or endocrine disorders. The company also produces some medical devices. Cramer shared his thoughts on the stock when a caller inquired about it during the January 29 episode. The Mad Money host commented:
I kind of liked it when I spoke to them. I gotta tell you, I kind of warmed up… I was in San Francisco, and I said, you know what? I get that stock a little down more… But I love Eli Lilly and David Ricks, and what can I say? You know, as long as Eli Lilly and David Ricks are putting up those numbers and they get that pill form soon, I think that Novo is a hold, not a buy.
5. Circle Internet Group (NYSE:CRCL)
Number of Hedge Fund Holders: 29
Circle Internet Group (NYSE:CRCL) is one of the stocks Jim Cramer commented on. When a caller inquired about the stock, Cramer said:
Circle Internet, yeah, no, I don’t really want to own that. Look, maybe it bounces, and then you can say goodbye. But that one, that one flew way too close to the sun, and you don’t want to be the first man on the sun. I know what that’s like.
Circle Internet Group (NYSE:CRCL) operates a stablecoin-based financial platform that helps organizations move money and build applications using digital assets. Cramer mentioned the stock during the January 7 episode and said:
Alright, let’s start with Circle Internet Group. Let me explain how this works. This is a stablecoin issuer. On paper, this one’s a standout. It’s up 160% from where it came public. But Circle’s IPO priced at $31, and then it opened at $69, then zoomed all the way to $299 in less than 3 weeks after it came public. Ever since, the stock’s practically been in freefall, now it’s back to $80 and change. So, sure, yes, it’s a big win if you got in on the IPO. Very few people did, but unless you did, well, you know what? You’re down big in this, big… Circle Internet came public, more than tripling in its first few days, I said you had to cool your jets. Good call. Of course, Circle proceeded to surge from $115 at the time to just under $300 over the next couple weeks… But if you sold when I went negative, you still would have avoided some massive losses down the road. Maybe that’s the key.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks Jim Cramer commented on. Cramer noted that the company reported a “stunning quarter,” as he said:
We know some tech companies can transcend the morass. Alphabet, the parent company of Google, reported a stunning quarter this evening with their Gemini 3 platform already racking up an astounding 750 million monthly average users. But any gains could be a little muted there because they are spending about $175 to $185 billion on capital goods. Wall Street was only looking for $115 billion. That’s a big chunk of money. By the way, a lot of that could be headed to Google favorite Broadcom. But it’s a $4 trillion company, I’m not sweating the program. Gemini’s winning the AI race, at least on the consumer side, so I think it’s worth every penny to spend. Remember, Google spent to defeat Bing and all other comers. I think it’s doing it again. It worked.
Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play.
3. Dover Corporation (NYSE:DOV)
Number of Hedge Fund Holders: 41
Dover Corporation (NYSE:DOV) is one of the stocks Jim Cramer commented on. Cramer mentioned the company during the episode and said:
The industrials, the old-fashioned non-data center industrials, are looking like huge winners from AI, even if we don’t know yet whether they deserve it. These stocks are doing so well. Honeywell, Dover, Emerson, wowza, can they run. And in reality, all they’re really doing is catching up with the rest of the market. They’re not expensive historically versus the S&P 500, which is how you evaluate these things.
These winners are why you should be invested in individual stocks. Think of what they’ve done. They have earnings, they have dividends, they have, they’re not that expensive, at least versus tech. They are delights with buybacks. They don’t overpay the people with stock options. Plus, during earnings season, they can give you huge upside surprises, and their stocks are being rewarded this year. It’s how the stock market was meant to work.
Dover Corporation (NYSE:DOV) manufactures equipment, components, and software solutions for industrial, energy, imaging, and climate applications.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 103
Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer commented on. Cramer showed an optimistic sentiment toward the stock, as he commented:
Lilly’s not alone. The irrepressible Johnson & Johnson, along with the effervescent Merck and Amgen, they simply refuse to quit. Why not? Even after the runs they’ve had this year alone, their stocks are not expensive versus the rest of the market. These are old-fashioned solid earners without the Tony Soprano overtones.
Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases. Cramer discussed the company’s recent earnings during the episode aired on January 21, as he stated:
Alright, what do we make of these earnings from Johnson & Johnson? This morning, the pharma titan reported a healthy revenue beat and a very modest earnings beat with a strong full-year forecast, which is I care about. However, the stock was unchanged. Now, it was down much more than that intraday in response to the print in part because it was up more than 40% last year and had a run up another 5% year to date going in the quarter. One of the best pharmas there is.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer commented on. Cramer noted that the company is “constantly taking share” from its competition, as he remarked:
We have the chief maker of the GLP-1s, Eli Lilly, soaring more than 10% as it rolls out trial after trial to see what these drugs can do beyond weight loss and diabetes, things like alcohol and tobacco addiction. They can make the ATF obsolete. Lilly’s got a joint venture with NVIDIA where they’re going… after hard-to-treat diseases. Hey, come on. With that kind of firepower, they’ll develop a new line of forever, people. Lilly’s gain is also arch rival Nova Nordisk’s pain. It’s not enough that President Trump wants to annex Greenland. Eli Lilly’s constantly taking share from Danish Novo Nordisk.
Eli Lilly and Company (NYSE:LLY) develops and markets medicines for diabetes, obesity, oncology, immunology, neuroscience, and other chronic conditions. Hardman Johnston Global Equity Strategy stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2025 investor letter:
The top individual contributors to relative performance during the quarter were Standard Chartered PLC, Eli Lilly and Company (NYSE:LLY) and Hitachi, Ltd. Eli Lilly announced a deal with the U.S. administration that includes a three-year exemption from tariffs and the sale of GLP-1 therapies through government channels at discounted prices. Access to these channels significantly expands the addressable patient population and supports meaningful volume growth. Strong operating results and an upgraded 2025 outlook were driven by continued momentum from Mounjaro and Zepbound. Eli Lilly continues to gain share from Novo Nordisk across both diabetes and obesity markets, with prescription trends for both products remaining robust. Orforglipron (oral GLP-1) approval and commercial launch anticipated in 2026. This is likely the most watched commercial launch of all time with extremely high expectations.
While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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